Markets were down modestly on Thursday with the S&P 500 down 0.7% and Toronto down 0.6%.
Shopify surged up 23% after announcing it would sell its logistics operation and reduce staff.
AutoCanada got pushed down 17% to $16.09 after releasing earnings. Part of the concern is likely the soaring cost of of its debt and in particular the “floor plan” debt that finances its vehicle inventory. This should not have been a surprise to analysts. The market is rightly skittish about companies with high debt as interest rates are sharply higher.
Perennial winner, Constellation software was down 3.7% and then announced it had suffered from a cyber attack on some of its systems and after announcing results from A subsidiary business that trades separately (Topicus).
The Melcor REIT is down under $5.00. To me that seems extremely cheap but of course I thought it was already very cheap at $6.00. When investors get nervous stock prices can be pushed lower than seems logical. This REIT, like most REITS does have substantial debt and so higher interest rates are an issue. But the Alberta economy remains strong and the Melcor management are experienced in managing through tough times.
Markets can change direction quickly but it does seem that there are a lot of negative things weighing the market down now including certainly the bank failures in the US and the impacts of sharply higher interest rates.
Meanwhile markets are set to open somewhat higher this morning.